Demand Confirmed in Excess of Amount Proposed in SCN Is Without Jurisdiction Under Section 75(7) — Allahabad HC Sets Aside Order Where Penalty Exceeded SCN Proposal

The Allahabad High Court has set aside an adjudication order under Section 73 where the penalty confirmed in the order (Rs. 35,008) exceeded the penalty proposed in the show cause notice (Rs. 30,800), holding that Section 75(7) of the CGST Act is mandatory and the Adjudicating Authority cannot confirm any demand in excess of the amount proposed in the SCN. The ruling by Justice Saumitra Dayal Singh and Justice Swarupama Chaturvedi in Writ Tax No. 3885/2026 (M/s Vakas Transport Service, decided 22.09.2026) quashed the order without calling for a counter affidavit, holding that where the legislature has forbidden the adjudicating authority from confirming any demand in excess of that proposed, it can never become open to the authority to do so.

The matter was remitted to the respondent for a fresh order after giving due opportunity of hearing. The ruling reinforces that Section 75(7) operates as an absolute ceiling on the demand determinable in the order-in-original, and even a marginal excess renders the order without jurisdiction.

- 2026-juristway.com-2667-HC(Allahabad)-GST  |  High Court of Allahabad  |  Writ Tax No. 3885/2026  |  22.09.2026